Call us at: (800) 968-0601|Thursday, April 27, 2017
DTN Midday Grain Comments 04/26 11:12
Corn, Wheat Higher at Midday
Trade is modestly higher at midday in slow trade.
By David Fiala
DTN Contributing Analyst
The U.S. stock market indices are higher with the Dow futures 20 points
higher. The interest rate products are mostly higher. The dollar index is 40
points higher. Energies are mixed with crude up $0.20. Livestock trade is
higher. Precious metals are mixed with gold down 2.50.
Corn trade is 1 to 2 cents higher at midday following the lead of the wheat
market after early weakness. The weather forecast is expected to bring heavy
rains into the middle of the belt this week and colder than normal temperatures
which should slow planting progress. The weekly ethanol report showed
production down 0.6% on the week, stocks were 1.02% higher, and gasoline demand
was 0.18% lower. Ethanol futures are a penny lower at midday which is limiting
upside in corn. Corn basis has remained steady with a firm tone this week;
producers continue to want to see higher prices. The July chart support is at
the 10, 20, and 200-day moving averages at $3.69-$3.70, with resistance the
50-day at $3.74.
Soybean trade is narrowly mixed at midday with trade continuing to grind
around the nearby range established the last few trading days. Meal is $1 to $2
lower and oil is 35 to 45 points higher. Wet weather moving forward should be
viewed as negative for beans since it could add acreage coming forward with
corn gaining sharply yesterday. South America should continue active
post-harvest movement in the near term. Basis has remained fairly steady in the
near term. July soybean chart support is the 20-day moving average at $9.60,
with resistance the upper Bollinger band at $9.76 then the 50-day at $10.00.
Wheat trade is 3 to 7 cents higher at midday with Minneapolis wheat leading
again at midday with cold temps slowing progress in the north. Further short
covering could accelerate with another positive finish today. Heavy rains could
raise disease concerns in much of the winter wheat belt with a cold snap for
Kansas coming. The dollar is just above the 99 level on the index despite the
overnight strength. On the July Kansas City contract support is at the new low
at $4.15 with resistance at the $4.27 10-day which we have moved above at
midday, with the 20-day at $4.31 area.
David Fiala can be reached at firstname.lastname@example.org
Follow him on Twitter @davidfiala
Copyright 2017 DTN/The Progressive Farmer. All rights reserved.